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tv   [untitled]    October 6, 2012 5:30am-6:00am EDT

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around because this is the epicenter of global banking front but everything around those two are collapsing boom boom boom boom boom boom boom and again you know this chart where they're showing the lock step move between gold and u.s. debt ceiling that would also betray what ben bernanke the head of the federal reserve bank the central bank in america said oh that holding gold is just a tradition there's no reason for us we might as well be hyperinflationary chickens we know. after it has been stripped of its currency delusions there is trying to figure it all out all been. well first you know. a currency starts to collapse through slowly through inflation you see prices rising every month but when it's a hyper inflationary collapse that's a political event people have lost complete faith in the currency so it's all about perception right so this takes us to the next headline s e c suze the one reading
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for not on wall street's take this is on bloomberg out comments from william d. cohen and he says the securities and exchange commission it seems has finally lost its mind in april motivated by what i consider pure maliciousness the f.c.c. initiated a cease and desist administrative proceeding it deems necessary for the protection of investors and the general public interest against jones rating agencies and its principal owner sean egan why max why did they yes because remember they downgraded us to you know they talk about the aaa rated list and for that reason unlike fitch unlike moody's unlike s. and p. that are on the take either directly they get money for ratings or they just get under the counter money for ratings. independent they downgraded u.s. debt as any sane person would do so now they're being attacked the trouble started for even jones on july sixteenth two thousand and eleven when even jones first
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downgraded u.s. sovereign debt by one notch to double a plus from aaa two days later how the f.c.c. wrote to them and seeking information about why they downgraded u.s. debt remember they're saying they're protecting investors in a way that they are protecting that chinese investor who owns a lot of the u.s. debt we're talking one creditor the chinese people who are very upset that the value of their dollars are actually worthless look i have expressed to the people in greece and the people in ireland and the people in egypt create your own by. rating agencies and downgrade us to the word should be downgraded to triple hooks triple c it's worthless job you can do this twenty minutes to cost of starting a rating agency and what is a post office box and one certain analyst from mit a cost of fifty thousand dollars a year that's it well in fact china has a rating agency called i think it's de gong and they downgraded u.s.
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debt long before egan jones and company so they were i think it's more about the u.s. if you're inside the empire you can't you can't downgrade any of those little people with their hyper inflationary chicken bond markets can't they go on is going to be gone. because. the empire you know pretty soon to be the guy who's going to show up and peeking with like three tons of opium and that we're. going to open opium again. but even jones wasn't intimidated so they downgraded u.s. debt further april of this year and that happened on april fifth on april nineteenth leaks started emanating from the f.c.c. that it had voted to start an administrative law proceeding against the firm and april twenty fourth they filed it now even jones the story of them is that they are privately held company with about twenty employees and they started in one thousand nine hundred five and it is the only one of the nine nationally recognized rating
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agencies in america that gets paid by investors instead of by the issuers of securities so that's important to realize in the face of this financial collapse that was caused by the likes of bear stearns hiring rating agencies to bless their junk bonds essentially they're toxic collect collateralized debt obligations a mortgage backed securities with the aaa rating they pay these rating agencies to do this and even william cohen here in the bloomberg article notes that you know e-mails emerged saying that from one of these top rating agencies that are not the subject of an investigation by the f.c.c. that. you know they would rate anything even if it were by a cow if they were paying it capitalizes would get a aaa rating and use as collateral to finance oh i don't know takeover of greek assets but look this is the insanity you're talking about that we've reached the point of no return i read the telegraph here in the u.k. that the leisure industry is suing the weather forecasters for coming up with a pessimistic forecast predicting rain because they say it cuts into the leisure
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industry so if you are a weather man and you are on television and you say well we expect rain over the weekend you're subject to a lawsuit because a black clouds of rain don't exist in our leisure world where it's all sunny in pink rainbows and sunshine coming out of barack obama spent trying there's nothing wrong that could ever befall us it's all pure play related and we're all over cents on the dollar. so remember it's all about perception and it's a currency war and you want to avoid the hyperinflationary chicken so you would have noted watching kaiser report when we interviewed chris cook recently he had just come back from tehran where he said the price of chicken had doubled in a day and that was a warning sign he said and sure enough we see the iranian reale collapsing hyperinflationary currency collapse is leading to big anti regime protests in iran right so there you have a gold making new all time highs against the euro against the swiss franc currency
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collapse and iranian rio people on the streets now going to the central bank so this is the global insurrection against banker occupation this is them manifesting itself on the streets of tehran and this is what occupy wall street all about this with the tea party is all about if they were honest with themselves this is what anyone who's against being completely shellacked a group of inside technocrats of banks hers is about get rid of these central bankers the protests were outside the central bank and they were calling for the governor of the central bank to stand down and chanting anti-government slogans now one hundred angry traders and official money lenders gathered in front of around central bank they were chased away but it's interesting that they do focus outside the central bank which is the one that controls the value of the currency and one wonders when this collapses completely if it hasn't done it already it could be happening right now while we were courting the show. you know whether or not in latin america when this happened when you saw. collapses the nation would perhaps
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like ecuador adopt the dollar the u.s. dollar so could we see a situation where they adopt the chinese room in be as their national currency for example who knows when it collapses oh this is what currency wars are all about no bill black one talking to in the second half of the show we've already been chatting about a plot we've got here we want to what you see you know ran on the central bank there we were. we get that here in london against mervyn king this what mervyn king to look like this i guess throw it all one plucked chicken get the pluck out of here mervyn king you're destroying this country with their quantitative easing what is it all about sounds like a laxative get real mervyn king stop abusing the population here in the u.k. let the markets do it the markets will do so they don't need you interfering they don't need you printing money. ok and then finally max greece blocks thirty million for f one circuit speaking of central banking and central government crazy
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insanities crazy stuff and currency wars because of course this sort of insanity helps lower the value of the euro and everybody wants their currency a little bit lower just not a lot lower like in the hyperinflationary. i think this one deserves the golden chicken grab my chicken max according to the ministry of development the circuit will be built in an unpronounceable location near patricide in the hope that the country can host a formula one event event sometime in the future well this is a perfect really breakdown of what's happening around the world greece is bankrupt it was invaded by banks hers they priced their assets for pennies on the dollar they lowered the country out of debt they extracted the wealth they impoverished the people they stole all of them wage earning potential they strip mined all the income producing assets now that they've lost our sovereignty now that the people
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are basically no longer part of a democracy then the global mega banks are elite are going to come in with formula one racing the minimum team or inquirers half a billion or a billion dollars to be part of the formula next i'm sure they have the olympics back again soon and which is another global only freak show all the people there oh they're good job cleaning the toilets for that bernie ecclestone guy with a little glasses of the billionaire donors but then i asked him again a real job with really come. just to put this insanity into context the economy of greece contracted by six point two percent in the second quarter and in august the coalition government agreed fresh spending cuts of eleven billion euros to the society at large in order to get the next installment of one hundred thirty billion euros and you know they made those cuts and now germany and brussels are demanding even more before they'll release the next traunch well they're just
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a greek people lined up on the track of the formula one race and right right over them that'll be part of the sport just won over a few thousand great people. you're telling put it all you. know with thanks so much for being on the kaiser report thank you max in the hyperinflationary chicken thinks you can get a lot of airplay citalopram all right stay tuned much more coming away got no black korea don't go away. my parents really truly honestly believe that what had happened was as a result of my father's exposure to agent orange i was born with multiple problems . i was missing my leg and my fingers and my big toe on my right foot i use my hands
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a lot in my artwork i find myself drawing my hands quite a bit to me for my hands you know just as if anyone would. but they do tell a story they tell us story of. oxen. news
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today violence is once again flared up. these are the images the world has been seeing from the streets of canada. china operations are all.
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kick him. welcome back to the kaiser report imax guys are time now to go to kansas city to talk with professor bill black author of the best way to rob a bank is to own one bill black welcome back to the kaiser report if you mix all
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right professor black a stock about lenny lenny brower for a second what were your thoughts when you heard the lenny brauer the head of the criminal division of the department of justice was caught boasting of his love for deferred prosecution agreements i was appalled by you know used to help the prosecution's during the savings and loan days and i was a justice department lawyer as was my white and lengthy brewer set out a roadmap on how people could of boy getting prosecuted their elite white collar criminal banks that caused the financial crisis and the way he said to do it is higher yourself an economist and be really too big to fail and that a lot of innocent workers are going to lose their jobs if you take any prosecution again start my criminal bank in other words you hold the workers hostage. right
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holding the workers hostage in this case or holding the markets hostage we saw hank paulson back in two thousand and eight give us three quarters of a trillion dollars or will blow up the market and you know this is this kicking the can down the road deferred accountability deferred prosecution does anything happen in real time anymore or is everything going to happen at some magical point the future some point of nirvana when things suddenly come back how is everything going to be deferred black i mean in the meantime what's happening for real wealth deferred prosecution means non prosecution and everybody knows it means non-prosecution and the one exception proves the rule arthur andersen was up or a third. deferred prosecution agreement and refused it and went to trial and lost in the trial court you know so there's no more arthur andersen but the looks of the justice department learned from all of that is oh my god we can't
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actually prosecute anybody large and so they don't actually don't prosecute large corporations anymore reisa proclaim that deferred prosecution agreements are adequate deterrence and that his agents were caught sophisticated and could detect whether a firm was serious about implementing a compliance programme so a lot of words there that are misused all the time like compliance program there is no compliance program and deterrence there are no to turns either other bill black well this is all about moving the deterrence this is all about allowing people to commit the crimes with absolute impunity and this was more than a wink wink nod nod now that your new digs in the city of london and we can go back to a classic comic routine of this is how you give me the excuse not to prosecute and it was wonderful brewer said now i want to warn you this
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approach won't always work. right there is there is the risk now is it true that brewer come from the same law firm as attorney general eric holder and if so is this a problem. yes they both come from coming to the berling they both come from representing many of the worst criminals or criminals in this action that firm was heavily involved in creating mergers and your viewers may understand that this is the thing that screwed up mortgage records throughout the united states and has put tens of millions of people's ownership of their homes at potential risk so at that is a problem i must tell you back in the savings and loan days. i worked under
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a counselor who came from coming in and burly and was very top and was picked to be very top but holder a group were picked to be marshmallows and they delivered all right now are plenty of brewers also member of the residential mortgage backed securities working group that has just filed a civil suit against j.p. morgan for mortgage fraud why a civil suit and not a criminal one bill block well and why a suit only against an entity that hasn't existed for war for years and why a suit not against the individuals who actually perpetrated the prod and who are multimillionaires in some cases billionaires and the answer is the answers are we don't do criminal cases of elite financial institutions in the same that it lanny breuer speech and i had a column you know about this that perhaps you can put on your site. lanny breuer
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say tried to cite their great success against the bank fraud and he said hey we brought an action against a criminal mastermind a minister for oculus well that's hilarious this is the. only c.e.o. of a significant lender came from a mortgage bank not anything remotely like wall street and the new book by barofsky who was the special inspector general of the tarp program called sig tarp brodsky's book makes play that he had to fight crazy to get brewer to prosecute the case that all of brewer and holder's instincts were not to prosecute even this crude fraud for august who by and you history fraud was so crude it was discovered in two thousand one fight fannie mae all right now i
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want to jump over to another area we recently saw the rigging of global interest rate markets live bore the f s a new and they have a new group their financial conduct authority says they will in the future prosecute bankers involved in bringing libel or the overwhelming evidence including all of the e-mails suggest this was a. prosecutable racket why can't they prosecute the crime that has happened in real time right now. you used the word can has nothing to do with can can refers to ability this is a problem of will and the f.s.a. you can create a competition in laxity which is exactly what the f.s.a. deliberately did it competed with the securities and exchange commission in the united states and see if you see the commodities futures trading commission and
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course congress to who could have the absolute weakest regulation if you look at you're never going to have regulatory leaders with backbone and you're never going to have staffers who often have back both because why would you go to work for an entity that exists to serve the banks as opposed to serve the people good people will leave in those circumstances and so what you're seeing is the f.s.a. and by the way the bank of england continued to be the land of the invertebrates where if you have any backbone you're not allowed to write well we are here in london we do the show in london because there's a race to the competition in laxity as you put it the race to the bottom who can be the absolute worst when it comes overseeing markets through london we had a i g lehman brothers bernie made off the london whale over j.p. morgan we learned about re hypothecation and. we're here in line in the part of the
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that there is a big conference going on for labor and they want one the left wing party they already had the lib dems conference they're kind of like a schmoozy in between nobody knows what they do a party and then of course they'll be the tory party with the current david cameron but none of the leaders on the local television address the fact that london is a cesspool of regulation that it won the competition to have the least biting regulatory framework and that's why. and many worries that the global economy and financial markets are in such disarray now if you're coming to london certainly what should we do should we go and find murmuring canterbury corner david cameron who what are we going to do dave phil black how are we going to rectify this i know you're coming over here let's what do you know what do you what do you suggest well first let's think out that if you have a competition in laxity everybody loses everybody ins up with crappy
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regulation and that's exactly what happened throughout the euro zone and in the united states the only way to win a competition in laxity is not to engage in the competition let me give you two specific examples from a conference i was at just last week in baltimore brooksley born one of the heroes who issued the famous warning about credit default swaps and got squashed by that bipartisan coalition of the clinton administration and alan greenspan and hill graham said that as soon as the f.s.a. got created that leaders the senior leadership of the f.s.a. began coming to the united states to industry conferences and saying you should leave america and do your deals and locate relocate in the city of
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london because we will give you weaker regulation and then a guy that have been with the securities and exchange commission for many many years said that's exactly what happened on initial public offerings i.p.o.'s that the city of london officials began coming to the united states to the trade meetings and say do your i.p.o.'s in the city of london instead of wall street because we will. look the other way while you do this and so i'd only make what might are you know thinking about your point of course the labor party on finance issues is not a party that is remotely of the left it is was a party of what would be in us terms the extreme right the lib dems were every bit as bad as the conservatives of anything are worse and so there has been no choice
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in the united kingdom for over a decade if you actually were on it to vote for someone who was really going to regulate so that's have to change one of these parties has to be changed into a party that represents the people of great britain or united kingdom or england whichever you know variance you have in mind at the time instead of representing the huge financial institutions because you've just seen what happens to a nation that wins a competition and laxity it loses its moral soul and it has repeated financial crises because what it will attract act is the worst pod scum throughout the world and it will have regulatory leaders who will stand by while the part of sky destroy the nation all right well right of time bill black thanks so much for
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being on the kaiser report thank you all right that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert are they my guest bill black we're going to send an e-mail please do so at kaiser report r t t v dot ru until next time next guys are saying. overcoming a barrier like this seems impossible. but
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